A.
different incentives influencing individuals working within companies

B. corporate governance structures

C.
short-term arrangements with outsiders

D.
long-term arrangements with outsiders

9)
What benefit can be enjoyed by followers?

A. The mistakes made by the first
mover.

B.
They can erect barriers to entry.

C.
They can gain big profit.

D.
Potential rivals may be discouraged.

10)
Fiscal drag is an automatic stabilizer because ...

A.
it helps slow the rate of increase in demand

B.
it is less likely o result in higher inflation

C.
it reduces the pace of growth

D. it acts naturally to keep demand
stable

11)
A balanced budget is ...

A. neutral

B.
inefficient

C.
• growing

D.
stable

12)
What is the percentage of public spending in Germany?

A.
10

B.
20

C.
30

D. 40% of GDP

13)
The number of shares sold by the original private investors is called ...

A.
flot

B.
flat

C. float

D.
flaot

14)
What is the significant form of Foreign Direct Investment?

A.
New subsidiaries

B. Acquisition

C.
Factories

D.
Service industries

15)
What do economists typically regard FDI now? As ....

A. complementary

B.
essential

C.
necessary

D.
corporate imperialism

16)
What are often at risk of free riding?

A.
Cheap good

B.
Expensive goods

C.
Public service

D. Public goods

17)
What stimulates the growth of world trade?

A.
Imports

B.
Exports

C. World Trade Organization (WTO)

D.
Comparative advantage

18)
Most trade occurs between ...

A.
countries that sell similar things to each other

B. countries that do not have huge
cost differences

C.
countries that have differences in consumer tastes

D.
countries that stem from their particular stock of natural resources

19)
Milton Friedman is an adviser to ...

A. Richard Nixon

B.
Margaret Tatcher

C.
General Pinochet

D.
Friedrich Hayek

20)
Frictional unemployment occurs because ...

A.
there is technically full employment

B.
some people get fired

C.
people have difficulty in finding jobs

D. most people change jobs from
time to time

21)
What does MR Friedman praise?

A.
Free trade

B. Free market

C.
Free country

D. Free economy

1)
G21 lobbies for more free hade in ....... .

A.
Oil

B. Agriculture

C.
Automotive

D.
Gas

2)
G8 consists of the G7 countries and ........ .

A.
Belgium

B.
Switzerland

C. Russia

D.
Sweden

3)
What has the potential to make all the players richer?

A.
The zero - sum game

B.
The game theory

C.
The monopolistic competition

D. The positive- sum game

4)
At what factor GDP can be calculated?

A. Cost

B.
Production

C.
Investment

D.
Public spending

5)
The effect of inflation can be eliminated by measuring ....

A.
GNP growth

B.
Economic growth

C.
Production growth

D. GDP growth

6)
What do must economists think about general equilibrium?

A. Something worth aspiring to

B.
Something worth achieving to

C.
Something worth establishing to

D.
Something worth acquiring to

7)
What kind of goods that may not exist in the real world?

A. Geffen goods

B.
Cheap goods

C.
Public goods

D.
Private goods

8)
What is the figure of the Gini coefficient in rich countries?

A.
0.1

B.
0.2

C. 0.3

D.
0.5

9)
The term globalization is synonymous with ....

A.
Income inequality

B. The spread of free markets

C.
Imports

D.
Capital markets

10)
Gold is not used any more as the backing of major currencies after ....

A.
The Great Depression

B.
The Second World War

C. The failure of the Breton Woods
Agreements in 1971

D.
The end of the 20th century

11)
The biggest role of the state of the economy is in ....

A.
Free market economy

B. Command economy

C.
Capitalistic economy

D.
Dual System Regulated economy

12)
In economic activity the importance of gold decline during the 20th century. It
has just become another .....

A.
Monetary asset

B.
Store of value

C. Commodity

D.
Hedge against inflation

13)
The role of state plays in economy is important. The maximum role will

be
found in ....

A.
the capitalist economy

B. the communist economy

C.
the socialist economy

D.
the free market economy

14)
Which one of the list that works against free market economy?

A.
Privatization

B.
Deregulation

C.
Liberalization

D. Nationalization

15)
Since 1980, politicians talking about the need to reduce the role of the state
in economy. Since then, public spending has continued to ....

A. increase as a share of GDP

B.
decrease as a share of GDP

C.
to be stable as a share of GDP

D.
to go up and down as a share of GDP

16)
Alan Greenspan was central bank boss that was a pointed as the chairman of the
board of governors of Federal Reserve Bank in 1987. He was reappointed in 2003
until 2005. He brought down inflation and created the conditions for strong economy
growth. Before becoming an economist, Alan Greenspan was a ....... .

A.
banker

B.
government employee

C.
minister in cabinet

D. jazz musician

17)
Higher growth in economy happens in the countries which have ....

A. Broadly free market policies

B.
Central economic planning

C.
High public spending

D.
Political stability

18)
People choose ..... .in their international transactions

A. Hard currencies

B.
U.S. Dollar

C.
Japanese Yen

D.
German Mark

19)
The main users of Hawala networks are ....

A.
Terrorist

B.
Criminals

C.
Traders

D. Overseas workers

20)
Friedrich Hayek's views were inspired by ....

A. Adam Smith's invisible hand

B.
Margaret Thatcher's views

C.
Ronald Regan's views

D.
Milton Friedman's ideas

21)
Hedging is most often done by people to reduce the existing risk. One of the
lists below is unlikely doing the hedging ....

A.
commodity producers and traders

B. government agencies

C.
financial institution

D.
non-financial firms

22)
One factor which is not directly influence your risk in investment is adverse
change in the ....

A.
exchange rate

B. foreign currency reserve

C.
the interest rate

D.
commodity price

23)
One method to avoid the financial risks attached to holding shares in a firm is
....

A.
selling all the shares

B.
selling part of the shares

C.
buying more the shares

D. diversification investment

24)
If two producers of the same commodity merge and becoming one company we called
it. ...

A.
diversification

B.
vertical integration

C. horizontal integration

D.
monopolistic action

25)
The money invested in currency market by speculators is often called ....

A.
sleeping money

B.
flying money

C. hot money

D.
long term investment

26.
How surprises often rise after. ...

A.
property development

B.
consumer's good inflation

C. interest rate reduction

D.
foreign investment increase

27)
Human capital cannot be increase by investing in ....

A.
education

B.
training

C. defence

D.
health care

28)
Horizontal equity is a way to keep taxation ....

A.
high

B.
low

C.
equal

D. fair

29)
Unemployed workers make gradually lose the motivation, self confidence or self
discipline needed to get to workplace and fulfil job requirements. This
syndrome called ....

A.
hysteria

B.
laziness

C.
hypothecation

D. hysteresis

1)
Income effect is a change in the demand caused by a change in ..... .

pensions,
and some other sorts of income according to recent movements

in
consumer price. This method known as ....

A.
compensation

B.
income adjustment

C.
indexing

D. indexation

4)
One of the lists below direct taxation ....

A.
consumption tax

B.
property tax

C.
value added tax

D. income tax

5)
Gini Coefficient is a measure of .... inequality

A. income

B.
education

C.
production capacity

D.
human capital

6)
Which one of this list includes in inferior goods?

A.
Electronic goods

B.
Luxury goods

C.
Jewellery

D. Rice

7)
Most economists reckon that. ... is best avoided.

A.
unemployment

B.
competition

C.
Innovation

D. deflation

8)
Most of the central banks set an inflation target, except ....

A.
New Zealand's Reserve Bank

B. France's Central Bank

C.
Bank of England

D.
America's Federal Reserve Bank

9)
To keep the economy working smoothly, the information should not be ....

A. comprehensive

B.
accurate

C.
cheaply available

D.
limit to state planners

1
0) The government provision of infrastructure is famous of its ....

A.
bad planning and corruption

B.
good quality and efficient

C.
quick delivery and cheap

D. good service and fast deli very

11)
According to Joseph Schumpeter innovation is ....... process

A.
an endogenous

B.
an exogenous

C. a creative destruction

D.
a profit seeking

12)
Although innovations push efficiency upward, the law protecting it creates
inefficiency through .....

A.
market mechanism

B. monopoly

C.
protection

D.
better quality product

13)
Insider trading takes place when someone with privileged and confidential access
to certain information before the news gets out. This practice was first banned
by .....

A. U.S

B.
U.K

C.
Germany

D.
Hong Kong

1)
Studies of relationship between growth and GDP per head in rich and poor
countries found no evidence that poorer countries grew faster. Why has not
absolute convergence happened?

A.
Bad countries in poorer countries

B.
Good governance in richer countries

C.
Good cooperation among richer countries

D. Other factors are not constant

2)
A positive factor of an economic growth is ....

A. open economy

B.
high public spending

C.
high inflation

D.
political instability

3)
In the 1950s and 1950s much of the economics of the poor countries experienced
corruption massive budget deficits rampant inflation caused by ....

A. high and inefficient
bureaucracies

B.
colonial policy during colonial era

C.
independence war

D.
open economy

4)
Although the rates of income tax were cut during 1980s and 1990s the total
amount collected via direct taxation continued to rise, because ....

A.
people worked bander

B.
company operated more efficiently

C. personal income and corporate
profit grew steadily during that period

D.
of decrease in unemployment

5)
Firms used .... to judge whether an investment project is worth while.

A.
profit

B.
positive net inflow

C. discounted cash flow

D.
the benefits exceed the costs

6)
A slower increase in price is called ....

A.
inflation

B. disinflation

C.
low inflation

D.
deflation

7)
Disintermediation makes markets ....

A.
bigger

B.
smaller

C. more competitive

D.
less competitive

8)
Division of labour means .....

A.
labour are free to organize

B.
divide labour into several division

C. specializing while having a
comparative advantages

D.
divide labour into several organization

9)
The government often used anti dumping policy to protect ....

A.
customer

B.
importer

C.
labour force

D. the local
producers

1)
What determines wages?

A.
Capital

B.
Employer

C.
Firm

D. Demand

2)
The greater the market flexibility ....

A.
the lower rates of employment

B.
the higher rates of unemployment

C. the higher GDP per head

D.
the lower GDP per head

3)
Laissez- Faire was supported by one of the following leaders ....

A. Margaret Tatcher

B.
Francois Mitterand

C.
Adam Smith

D.
Helmut Schmidt

4)
A land tax has obvious advantages because ...

A.
it can improve the quality of the land

B.
it can penalize the owners

C.
it can increase the economic value of the land

D. it is simple and cheap to levy

5)
What often makes more harm than good?

A.
Property rights

B.
Liberal economics

C. Regulation

D.
Antitrust

6)
If things go wrong troubled banks will be ....

A.
closed

B.
taken over

C. bailed out

D.
repossessed

7)
What can government do to help promote liberal economics?

A.
Decentralization

B. Deregulation

C.
Democratization

D.
Deliberalization

8)
Economics are trying to help ...

A. insurers

B.
bankers

C.
traders

D.
taxpayers

9)
Life - cycle hypothesis is an attempt to explain that people split their income
between ....

A.
their spending and loan, and the way that they save

B.
their loan and saving, and the way that they spend

C. their saving and spending, and
the way that they borrow

D.
their loan and saving, and the way that they borrow

10)
What is wholly liquid?

A. Cash

B.
Money

C.
Cheque

D.
Traveller's cheque

11)
Highly liquid markets attract more ...

A.
buyers

B. liquidity - seeking traders

C.
sellers

D.
market makers

12)
What has no place for liquidity traps?

A.
Risk averse

B.
Great depression

C. Monetarism

D.
Recession

1)
Changes in public spending and taxation are known as ...

A. fiscal policy

B.
macroeconomic policy

C.
monetary economic

D.
economic policy

2)
How big is the proportion of employment that is in the service in OECD countries?

A.
One third

B.
Two thirds

C. Four- fifths

D.
Three - fifths

3)
How much extra output a firm would get by employing an extra worker is called
.....

A.
the marginal revenue

B. the marginal product of labour

C.
the marginal price

D.
the marginal propensity

4)
Market forces come from ...

A.
regulation

B. buyers

C.
government

D.
market itself

5)
Externalities can be reduced through ....

A.
antitrust policy

B.
Marshall Plan

C. regulation

D.
tax system

6)
Which of the following factor that allows market power to exist?

A.
Monopoly

B. Perfect competition

C.
Oligopoly

D.
Monopsony

7)
What is the name of the institution through which the aid of the Marshall Plan
was administered?

A.
International Aid

B.
Nation Building

C.
New Marshall Plan

D. OECD

8)
Who believed that a country's economic prosperity and political power came from
its stocks of productive resources?

A. David Hume

B.
Keynesians

C.
John Law

D.
Monetarists

9)
Every time there is a shift in the balance of supply and demand, there will be
....

A.
changing prices

B. sticky prices

C.
low prices

D.
high prices

10)
Which of the following is mobile?

A.
Land

B.
Mergers

C. Enterprise

D.
Acquisitions

11)
Microeconomics is the study of economic phenomenon such as ...

A.
growth

B. saving

C.
inflation

D.
unemployment

12)
Controlling the money supply is called ...

A.
monetary policy

B.
monetary neutrality

C.
modern portfolio theory

D. monetarism

13)
Who said that portfolio theory is net economics?

A.
Adam Smith

B. Milton Friedmon

C.
Harry Markowitz

D.
David Hume

14)
What does monetary change?

A.
Interest rate

B.
Exchange rate

C. Discount rate

D.
Inflation rate

15)
What misted people when there is money illusion?

A.
Growth

B.
Barter

C.
Liquidity

D. Inflation

16)
What is it called in the UK that consists of cash, other financial institutions,
and current account deposits?

A.
Ml

B. M4

C.
M3

D.
MO

17)
Where does longer - term capital change hands?

A.
Money market

B.
Financial market

C. Capital market

D.
Market capitalization

1)
Who can help a country create a nation building?

A. World Bank

B.
Other country

C.
NAFTA

D.
NAIRU

2)
Where does nation building never functions?

A.
Former Soviet Union

B. Afghanistan

C.
Iraq

D.
East Timor

3)
What is the advantage of nationalization?

A.
It has increased mixed economy

B.
It lacks of competition

C. It has increased economic
efficiency

D.
It makes state-owned businesses enjoy a legally protected monopoly

4)
The example of natural monopoly is in ....

A.
oil distribution

B. water distribution

C.
rice distribution

D.
electricity

5)
Markets for products with network effects are dominated by ....

A.
a single firm

B.
some firms

C.
many firms

D. a few firms

6)
Negative income tax is only for ....

A.
the poor

B.
the rich

C. the working poor

D.
the working rich

1)
What is the opposite of normative economics?

A.
Negative economics

B.
New economics

C. Positive economics

D.
Old economics

2)
Non-price competition is common when there is ....

A.
monopoly

B. oligopoly

C.
monopsony

D.
free trade

3)
The trade is growing fastest between ....

A. industrial countries with
similar economies

B.
industrial countries with different economies

C.
agricultural countries with similar economies

D.
agricultural countries with different economies

4)
Nobel Prize for economics is dominated by economists from ....

A.
Norway

B. America

C.
Netherlands

D.
The U.K.

1)
Offshore is used to call ....

A.
a firm locate on shore near a beach

B.
a firm is an offshore oil Rig company

C.
a firm is a foreign company

D. the usual rules of a person or
firm's home country don't apply

2)
Okun's law said that if GDP grows at around 3%, the jobless will be unchanged.
If it grows faster, the unemployment rate will ....

A. fall by half of what the growth
rate exceeds 3% by

B.
stay the same

C.
increase by half of what the growth rate exceeds 3% by

D.
be the same

3)
When a few firms dominate a market form a cartel we called it:

A.
Oligopoly

B. Monopoly

C.
Competition

D.
Free Market

4)
An oil cartel will not be effective if ....

A.
they dominate the crude oil market

B.
they strict on their quota of production

C. they produce and sell oil as
much as possible

D.
they obey the commitment within cartel

5)
An economy that allows unrestricted flow of people, capital, goods, and services,
we call it ....

A.
closed economy

B. open economy

C.
free economy

D.
open market

6)
Central banks control the growth of money supply. They do it by ....

A.
controlling of money printing

B.
controlling interest rate directly

C. buying and selling securities in
open markets

D.
issuing securities

7)
What is the optimal currency area?

A. A geographical area within which
it would pay to have a single currency.

B.
A geographical area within which it would pay many currencies.

C.
A geographical area within which the money supply never grows.

D.
A geographical area within which there is no central bank.

8)
For the concept of optimum to mean anything there must be both:

A.
a goal and the practitioner

B.
a goal and a team to achieve it

C. a goal and a set of constraints

D.
a goal and a goal keeper

1)
Pareto efficiency is about a situation in which nobody can be made better without making somebody else ....

A.
better off

B.
changed for better or for worse

C.
stay the same

D. worse off

2)
Paris club is the name given to the arrangements through which countries reschedule
their official debt. Its member is the 19 founders of the OECD as well as ....

A.
USA

B.
China

C. Russia

D.
Japan

3)
Like any monopoly, patents create ....... .

A. inefficiency

B.
efficiency

C.
unemployment

D.
new ideas

4)
Insignificant events and choices can have huge consequences for the development
of a market or an economy. This concept is known as ....

A.
competition

B.
patent protection

C. path dependence

D.
market is monopoly

5)
The most competitive market imaginable is ....

A.
Monopoly

B.
Oligopoly

C.
Monopsony

D. Perfect competition

6)
There is a trade off between unemployment and inflation. This theory was
developed by ....

A.
Milton Friedman

B.
Adam Smith

C.
Paul Samuelson

D. A.W.H Phillips

7)
But on 1970s this relationship didn't work anymore. The economists prefer to
talk about. ...

A. Non accelerate of inflation and
low rate of unemployment (NAIRU)

B.
Low rate of inflation and low rate of unemployment

C.
Low rate of inflation and zero unemployment

D.
High rate of inflation and high rate of unemployment

8)
A fall in the price level increases the real value of people's savings making
them feel wealthier and thus causing them to spend more. This increase in
demand can lead to higher employment. This concept is known as ....

A.
income hypothesis

B.
phillips curve

C. pigau effect

D.
path dependence

9)
The Plaza Accord and Louvre accord were made among five big countries in 1985
and 1987 in order to stabilize ....

A.
Deutsche Mark

B.
Japanese Yen

C.
British Pound sterling

D. US Dollar

10)
There are 3 motives for holding money: Transactional motive, Precautionary
motive, and Speculative motive. These motives identified by ....

A.
Milton Friedman

B. John Keynes

C.
Anthony Samuelson

D.
A. W. H. Phillips

11)
Some advocates of anti - dumping policies say that cheap imports are example of
predatory pricing. This slogan is usually used by ....

A.
politicians

B. local producers

C.
importers

D.
exporters

12)
Price is a point where supply meets demand in equilibrium. Under perfect
competition all producers are price takers. Under a monopoly a seller has some
control over the price. Usually the government acts as the only seller. This
happened under ...... economy

A. a government controlled

B.
free market

C.
capitalistic

D.
competitive market

13)
In order to transform a state owned monopoly to be more efficient government
does ....

A.
privatisation and Deregulation

B.
privatisation, and Liberalisation

C.
deregulation and Liberalisation

D. privatisation, Deregulation, and
Liberalisation

14)
Improving fiscal position can be achieved by

A.
raising taxes and cutting public spending

B.
privatisation and raising taxes

C.
privatisation, raising taxes, and cutting public spending

D. privatisation and cutting public
spending

1)
Take the fisher equation, MV = PT, where M is the stock of money, Vis the
velocity of circulation, P is the average price level and T is the number of
transactions in the economy. Fisher, Keynes and Friedman, all of them assume
that. ...

A.
M is constant

B.
V is constant

C.
P is constant

D. T is constant

2)
Queuing usually reflects that demand exceeds supply because the price is set
too low or deliberate rationing by the seller. This is a fairer way as is regarded
by ...

A. customers

B.
producers

C.
sellers

D.
government

3)
Quota of import is a form of protectionism. This policy is made to protect ...

A.
customers

B.
importers

C.
foreign producers

D. domestic producers

4)
Random walk is about ........ .

A.
people on the street

B. unpredictability of prices of
many financial assets

C.
the way the market behaves

D.
the way of the stockbrokers walk on floor of NYSE

5)
Rate of return is calculated by ..... .

A.
profit

B.
sale

C.
profit after tax

D. expressing the profit as a
percentage of capital used to produce it

6)
Rationing is often used when the distribution decided by market forces IS ....

A.
corruption

B.
mismanagement

C.
an open market

D. a black market

7)
Recession is a period of slow or negative economic growth, usually accompanied
by ....

A.
inflation

B.
deflation

C. increasing unemployment

D.
decreasing unemployment

8)
Regressive tax is regarded by economists goes against principle of ....

A.
equality

B.
justice

C.
horizontal equity

D. vertical equity

9)
Regulation is rules governing the activities of private sector enterprises and
is usually introduced to tackle market failure, but regulation can also generate
more costs than benefits. Which one of the following statements is incorrect?

A.
Regulation creates compliance costs

B.
Regulation may lock an industry into an inefficient equilibrium

C.
Regulation may hold back innovation

D. Regulation makes a market more
competitive

10)
Regulatory is usually small in ....... market.

A.
government-controlled

B. competitive

C.
monopoly

D.
oligopoly

11)
A top automobile executive was willing to lead a near bankrupt car

manufacturer
for only one US Dollar per year when he was paid 1

million
a year by a different company. What we call this difference of

999.999
USD per year?

A.
charity

B.
donation

C. economic rent

D.
rent

12)
A union demanding higher wages to the management of a successful company
without offering anything in return. What is the name of this union's move?

A.
Compensation seeking

B.
Equality seeking

C.
Justice seeking

D. Rent seeking

13)
A government should maintain its population steady. It means that it is ...